BRITANNIA 2017-18 Annual Report Analysis

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BRITANNIA 2017-18 Annual Report Analysis
Fri, 17 Aug

BRITANNIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BRITANNIA Income Statement Analysis

  • Operating income during the year rose 9.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY18 as against 14.1% in FY17.
  • Depreciation charges and finance costs increased by 19.1% YoY and 39.3% YoY, respectively.
  • Other income grew by 10.5% YoY.
  • Net profit for the year grew by 13.5% YoY.
  • Net profit margins during the year grew from 9.6% in FY17 to 10.0% in FY18.

BRITANNIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 90,541 99,140 9.5%
Other income Rs m 1,505 1,664 10.5%
Total Revenues Rs m 92,046 100,804 9.5%
Gross profit Rs m 12,782 15,017 17.5%
Depreciation Rs m 1,193 1,421 19.1%
Interest Rs m 55 76 39.3%
Profit before tax Rs m 13,040 15,184 16.4%
Tax Rs m 4,197 5,142 22.5%
Profit after tax Rs m 8,846 10,040 13.5%
Gross profit margin % 14.1 15.1
Effective tax rate % 32.2 33.9
Net profit margin % 9.6 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BRITANNIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 16 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 22.5%.
  • Long-term debt stood at Rs 846 million as compared to Rs 314 million during FY17, a growth of 169.3%.
  • Current assets rose 35% and stood at Rs 32 billion, while fixed assets rose 50% and stood at Rs 16 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 52 billion as against Rs 41 billion during FY17, thereby witnessing a growth of 26%.

BRITANNIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 26,964 34,062 26.3
 
Current Liabilities Rs m 13,454 16,480 22.5
Long-term Debt Rs m 314 846 169.3
Total Liabilities Rs m 41,088 51,879 26.3
 
Current assets Rs m 23,392 31,513 34.7
Fixed Assets Rs m 10,354 15,504 49.7
Total Assets Rs m 41,088 51,879 26.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BRITANNIA Cash Flow Statement Analysis

  • BRITANNIA's cash flow from operating activities (CFO) during FY18 stood at Rs 12 billion, an improvement of 183.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 538.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 21% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 608 million from the Rs -37 million net cash flows seen during FY17.

BRITANNIA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 4,413 12,488 183.0%
Cash Flow from Investing Activities Rs m -1,499 -9,563 -
Cash Flow from Financing Activities Rs m -2,951 -2,318 -
Net Cash Flow Rs m -37 608 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BRITANNIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 83.6, an improvement from the EPS of Rs 73.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 6,506.8, stands at 74.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 14.8 times, while the price to sales ratio stands at 5.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 68.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 754.5 825.8
TTM Earnings per share Rs 73.7 83.6
Diluted earnings per share Rs 73.8 83.7
Price to Cash Flow x 77.8 68.1
TTM P/E ratio x 74.7 74.6
Price / Book Value ratio x 13.6 14.8
Market Cap Rs m 780,810 780,355
Dividends per share (Unadj.) Rs 22.0 25.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BRITANNIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during FY18, from 1.7x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 201.0x during FY18, from 240.3x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 29.5% during FY18, from 32.8% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 43.7% during FY18, from 48.0% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 19.5% during FY18, from 21.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.7 1.9
Debtors’ Days Days 7 11
Interest coverage x 240.3 201.0
Debt to equity ratio x 0.0 0.0
Return on assets % 21.7 19.5
Return on equity % 32.8 29.5
Return on capital employed % 48.0 43.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how BRITANNIA has performed over the last 5 years, please visit here.

BRITANNIA Share Price Performance

Over the last one year, BRITANNIA share price has moved up from Rs 4,245.8 to Rs 6,506.8, registering a gain of Rs 2,261.0 or around 53.3%.

Overall, the S&P BSE SENSEX is up 19.4% over the year.

(To know more, check out historical annual results for BRITANNIA and quarterly results for BRITANNIA)

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BRITANNIA Announces Quarterly Results (2QFY20); Net Profit Up 32.9% (Quarterly Result Update)

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Here's an analysis of the annual report of BRITANNIA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of BRITANNIA. Also includes updates on the valuation of BRITANNIA.

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